China tech stocks slump as nation issues draft competition rules

Baidu Inc. and NetEase Inc. fell more than 5% while Tencent Holdings Ltd. dropped 4.1%.

China’s latest moves to tighten its grip on the nation’s internet giants helped trigger a fifth consecutive day of selling in the nation’s bellwether technology stocks.
 

The Hang Seng Tech Index dropped 3.1%, after the market regulator issued draft rules banning unfair competition among the nation’s online platform operators. Alibaba Group Holding Ltd. fell nearly 5% and was the biggest point-drag on the benchmark Hang Seng Index, which closed 1.7% lower. Losses accelerated in afternoon trade as China issued separate rules to protect key network facilities and information systems, effective next month.

Baidu Inc. and NetEase Inc. fell more than 5%